Fuel outlets in rural areas suffer more due to cash seizure

Retail fuel outlet owners in Chennai seek exemption from cash seizures on the way to the bank due to election-related challenges.

With too many instances of cash belonging to retail fuel outlets being seized on the way to the bank, their owners are seeking an exemption. They say that despite showing the required documents, their cash was being seized. The seizures have been more in rural areas where cash transactions are more when compared to urban locations.  

A bunk owner in Coimbatore said that it would not be possible for them to get credit from the oil marketing companies if they did not pay cash for the fuel loads. “This is a cash and carry business. Other businesses do manage to get credit, but that is not so in the case of the OMCs. We cannot let petrol pumps go empty since this is an essential item and this is election time too. The various district administrations only give account of the amount that is seized daily. They do not say how much of it was returned. Both these details should be shown to give the correct picture,” he said.

In Thanjavur, a bunk owner said, “They seized ₹3.5 lakh as it was being brought from my manager’s house on the way to the bank. They were in a hurry to close the case and take the cash into account. It seemed as if they had a target to meet. The officials in the team know my bunk and the staff since they buy fuel at my outlet. But still they went ahead with the seizure.”

Another bunk owner from Tiruvarur district said that perhaps some kind of passes could be issued for them. “The limit should be increased from ₹50,000 to at least ₹1 lakh. Even election expenses of candidates are being increased each time. It’s been 10 days since the flying squad seized ₹55,000 from my staff. I was asked to go to an N section and submit a form. The ‘tapal’ has to go from one office to another and that takes four days for that alone. I am now waiting for the committee to meet and get the money released,” he said.

Oil industry sources said that OMCs and the Election Commission were seized of the matter. However, the EC said conduct of free and fair elections was far more important and inconveniences had to be borne.